Sep 25, 2016

* How you trade after you’ve made
money versus after you’ve lost money: Do you trade more?
Larger? Do you trade differently based on recent P/L? Do you become
risk averse after recent losses? Does that affect your future P/L?

* How do you trade when you’re taking more risk
versus less risk? Does different size/risk exposure cause you to trade
differently? Are you actually making more money when you’re taking more
risk?

* What kinds of markets and market patterns provide
you with your greatest profits? Losses? Do you trade selectively to
maximize your best opportunities? Do you overtrade markets that are not
ones providing you with opportunities?

* What is your ratio of winning to losing
trades? What is the ratio of the size of average winners to the size of
average losers? How successful have you been in finding large
winners? In preventing large losers?

Many times, our greatest biases and psychological
mistakes come through when we thoroughly review performance. The decision
to not review performance is perhaps traders’ greatest bias blind spot.

All above points are too much important for success in trading.

One must contemplate and get answers to all the questions above and find reasons as well and take necessary steps to improve.

5 Types of Mindset And Importance For Traders - Successful Mindset For Traders

Create a better mindset for success in trading

1) An open mindset – Traders succeed
when they see things that others don’t. Sometimes those are overarching themes
and trends; sometimes they are short-term patterns in market behavior. To see
things differently, we need a mind that is open to new and different
information and open to shifts in market behavior.

2) A quiet mindset – Minds filled with noise can’t
process new information. When we’re focused on ourselves and our
profits/losses, we’re no longer focused on markets. We can’t exercise
self-control in our actions if we are not able to sustain control over our
thought processes.

3) A constructive mindset – Losses happen. We miss
opportunities. The great trader learns from mistakes and embraces the lessons
from drawdowns. If every day brings wins from trading or wins from learning,
there is always something of value to be taken from each day.

4) A positive mindset – It’s because we cannot count upon
our profits and losses to make us happy that we need to lead a fulfilling life
outside of trading. A life that is filled with meaningful activities, fun
activities, activities that bring us close to others, and activities that give
us energy is most likely to provide us with the emotional fuel needed to power
through challenging market times.

5) An action mindset – All the best ideas and intentions
will get us nowhere if we aren’t prepared to act upon them. The action mindset
is one focused on plans, translating excellent ideas into excellent risk/reward
opportunities. Preparation is idea-focused, but also execution-focused. It is
as important to work on our implementation of ideas as our generation of them.

According
to the agency’s Tuesday report, up to 21 percent of China’s loan
pool is “non-performing loans,” (NPLs) which means debtors are struggling
to make the repayments. At the same time, only 1.8 percent of loans
were classified as bad ones by state authorities last June.

Moreover, Beijing’s reliance on credit growth
for providing near-term GDP increase could exacerbate existing problems,
Fitch stressed, as it “will increase the size of asset-quality
problems in the financial system.” “There seems a high likelihood that banks’
NPL ratios will continue rising over the medium term, in light
of this discrepancy,” the report stated. “There are already signs
of stress, most obviously in the increased frequency with which
banks are writing off or offloading loans, such as those to asset-management
companies.” As of the late 2015, Chinese debt made up 243 percent
of the national GDP with a prospect of reaching 269 percent
on a condition of debt continuing to grow. The latest
statistical data also revealed that loans will be increasing by 13 percent
annually, surpassing the pace of the GDP growth that stands at 6.5
percent as of now.

Liquidation of bad loans would cost China some $2.1 trillion,
if the country’s financial sector moved to address the problem
immediately, the report assessed. In longer perspective, however, dealing
with the growing economic pressure would require the government taking
some drastic measures such as writing off debts or expanding
repayment terms.

Still, some experts are skeptical about the Fitch’s assessments.
Senior economist at Commerzbank’s Singapore Hao Zhou said that the
problems of Chinese financial system are caused by the shadow banking
sector and aren’t big enough to plunge the economy. “The size [of shadow
banking] is about 12 to 15 per cent of the overall banking
[industry] and most of the shadow banking assets are related to bonds
and cash products, which is seen as a low-risk product,” he said
in an interview with City A.M.

Sep 4, 2016

Take time to do your HOMEWORK before you start
trading/investing or select an advisor

Why traders lose money?

Selecting right advisor for stock market

Do your HOMEWORK before you start trading or select an advisor

Yes, this has been the problem with most if not everyone.

A person wants to trade/invest in the market and for that he
wants some professional/expert advise.

So, he goes on Google and search for the same. In result they
get a lot of advertisement sites as well some other results for the same.

Now, the person opens a bunch of the sites from the result
and surfs them not giving proper time to go inside all pages and read it fully
and also not giving time to compare.

Also, a big mistake made by him is register on the site
for free trial, without knowing what it free trial? Why it is given out?
What will he get out of it? Does it satisfy his needs for what he was looking
for in the first place? Is it the right thing to do? Does any valuable thing
come in free? Can he judge the performace of anyone for next one month based on
1 day advice? (read full article on free trials scam here http://meghainvestments.blogspot.in/2012/07/trap-of-trials-read-why-free-trials-is.html
)

So, he doesn’t do this and simply registers. Why, because of
lack of awareness of the above questions as well as the deep subconscious lure
of ‘free things’ in human nature. Besides, it’s fast, as the ‘unscrupulous
site’ is only asking for name and mobile number most of the time which takes
few seconds to fill up (and they know it).

So, the point is you should not be impatience in starting
your trading and take your time to check out the complete site and try to
figure out below questions by searching whole site, comparing it with other
sites and its services on several points.

Also TALK TO THEM. You ask many questions and continue
your discussion for many days. This is also a very good point to understand the
real character of the advisory firm and its genuineness. Ask them questions
about their methods and so on. Ask them why 10 points why you should trust them
with your money. (we have this big notice on our site saying discuss with us
before selecting services)

See, just can’t risk your thousands or lacs Rs. by opening
websites in google results and registering in them for free oneday trial. Is this
what you want really? So, TAKE YOUR TIME and DO YOUR HOMEWORK before your trade
or invest( learn some most basic things about trading- available on google
only- devote 1 week or 2 week to find good advisor and selecting and scrutinizing
them). Nothing is running away.

It’s your hard earned money (even if it’s not hard earned,
you wouldn’t want to just throw it away!)

Yes. You might think this is very
obvious question. Of course to earn money.

But just repeat the question in
your mind, to yourself, why am I even in the stock market? What am I doing?
What do I want to achieve out of it? Why am I trading or Why do I want to
trade?

The entire point we want to make
here is that we have seen, over talking to thousands of persons and serving
hundreds of clients that they literally are not FULLY AWARE of their actual
purpose of being in stock market, except this vague obvious idea that ‘it will
earn them money or to make money’

This is problem one and it gets
worse. At least, at this stage they have this consciousness of making money,
although they didn’t have full understanding of their goals, objectives and
plan for entering market or starting trading and investing.

Now, after they are in market, this
thing gets worse in the form of them completely forgetting WHY THEY WERE IN
THE MARKET IN THE FIRST PLACE?

Yes, this happens. Imagine you
setting out for a trip to, say Ladakh and on the way visiting Delhi, Simla and
so on and your time and expenses are running out. You get immersed in
destinations on the way that you forget to focus on getting to Ladakh. Although,
this is not an exact illustration, I hope you understand what I want to say.

Because of this, after sometime in
market, the person starts to trade and invest haphardly, tries to get in and
out of stocks, takes advice of any Tom, Dick, Harry and Tanyas, or Sonias of
xyZ stock advisory who calls him, keeps registering on anonymous websites
offering literally 90-99% accurate trade tips…and so on….

…This is what we mean by “completely
forgetting WHY THEY WERE IN THE MARKET IN THE FIRST PLACE?”

This happens because of one or many
of the reasons below,

1.complete dumbness (sorry) of the investor about how
the market works and commonsense of purchasing any service or professional
advise

2.Genuine non-awareness of the way market works, how to
select and not select a good advisor, non awareness of unscrupulous
malpracticing businesses in this field of stock consulting etc.

3.Initial losses in the market kills the temperament,
moral, tempo and mood of the person which disorients him from prudent thinking
and acting regarding all these

You will
find the below pop up on our site on home page reminding every visitor what are
basic purposes of them being in the market which I also put below, (comprise
both investing and trading)

1. You want to generate extra/side income
source.

2. You want to build a long term portfolio for
your family and kids.

3. You want to increase your standard of
living.

4. You want to participate and benefit from
the Indian economy and growing stock markets.

5. You have a certain risk capital and you
want to try it on stock/commodity trading.

6. You are a fulltime trader or want to be a
fulltime trader.

7. You are broker or stock market
professional.

This
thing actually makes them commit lots of other mistakes which ultimately leads
them into decisions which in turn give them further failure in trading and
investing.

So,
the whole point is you must not GET DISORIENTED and let your subconscious mind
take over you.

Sep 1, 2016

Boosted by a strong stock market show today, the total market capitalisation (m-cap) of BSE-listed companies surged to an all-time high of Rs 110.7 lakh crore ($1.64 trillion). Following the sharp rally in stocks, investor wealth rose by Rs 1,39,948 crore to Rs 1,10,70,610 crore.

Among the 30 Sensex companies, 29 scrips ended higher, led by Asian Paints and Bajaj Auto. Bharti Airtel fell by 2.82 per cent.

BSE is among the world’s 10 largest exchanges in terms of market value, while it is the biggest in terms of number of firms listed on its platform. Over 2,900 companies trade on BSE. On the exch-ange, 1,638 scrips adv-anced, while 1,073 dec-lined and 216 remained unchanged.